WollieVerstege
Expert Member
Although it is 2 different markets, there are certain underlying principals that are applicable in both.But then that doesn’t necessarily have any bearing on consumers.
It’s two entirely different markets.
As the world continues to transition from ICE to EV, the cost to manufacture the underlying components of an ICE vehicle will become increasingly expensive. This is ECON101, the less units of a component you manufacture, the more expensive it becomes for each of those components. It is not even debatable.
ICE vehicles will therefore become increasingly expensive to repair over time, also increasing the number of vehicles written off that exceed the threshold as uneconomical to repair. Eventually components will even become uneconomical to manufacture, although it looks like this is several decades away.
Conversely, EV's are increasingly becoming cheaper and cheaper to repair. Hardly a month goes by that some component is not cheaper than it was the month before. Plus, there is a lot of new tech, including batteries, that is in the pipeline for EV's.
So this is where I get confused, supposedly an insurance company is looking at the above and thinking: "Yeah, lets shun the thing that is simpler and cheaper to insure and rather insure the more complicated and expensive thing."